When it comes to Facebook ads, you have probably read it all. How to use images, copy, headlines, targeting, ad sets, campaign objectives, videos, etc. But today let’s talk about the often untouched topic: budget.
Facebook gives a couple different options for budgeting, and if you ask 100 people their budgeting strategy, you will get 100 different answers.
It’s true that there isn’t one perfect budgeting strategy, but here are three main tips we have learned in our time.
Daily Budget Is Best
Two of the main options for Facebook ad budgeting is daily vs. lifetime.
A daily budget is when you tell Facebook, “I want to spend roughly $___ per day.” It should be noted that Facebook might spend a little more than your daily budget on certain days, but it will also spend less some days. Facebook seems to be smart enough to average out in the long run.
A lifetime budget is when you tell Facebook, “I want to spend roughly $___ before these ads end on a certain date.” Generally, this will divide it evenly among the days that your ad is running. It also ensures that your ad set won’t spend more than your lifetime budget.
In our time of running ads, we have tried both. We 100% recommend daily budgets. This is for one main reason!
Editability (is that a word?). With daily budgets, you have more control to adjust which ad sets are getting more budget. You can easily change the daily budget at any time and spend more/less where you would like.
(Worried about forgetting about a daily budget and accidentally letting an ad roll for months? You can set spending limits at the campaign and account levels!)
When you see an ad set bringing in great results, what do you want to do? Increase the budget by 15,000%? Us too. Unfortunately, it takes more control than that.
You can hear this from any expert in the field, but drastically increasing an ad set’s budget can drastically ruin the ad set. Many think the increase resets Facebook’s algorithms and loses much of the data the ad has gathered.
So what do you do for an ad set that is performing well? Increase the budget slowly. There are many different opinions on how much you should increase.
Some say only 10% a day.
Some say 20% every other day.
Some say 25% a day if you are spending more than $16 per day.
Some say it depends whether or not you are manually or automatically billing.
What’s the right answer? No idea. But we do know that if you have an ad performing well, it’s better to be safe than sorry. Increase slowly!
More Isn’t Always Better
If you have an ad set spending $5 per day and bringing $0.50 leads, that’s great. You want to keep that success. So if you spend $500 per day, you should get 1000 leads a day instead of 10, right? Not always.
It is easy to assume that spending more money will get you the same cost-per-whatever, but that isn’t always accurate. Much like increasing the budget, there isn’t a perfect answer for how much could be best for your ads.
Just make sure to keep an eye on how your cost-per-whatever performs as you increase the budget. You don’t want to increase too much, waste money, and get worse results.
What other strategies have you perfected for your budgeting?